Delta Air Lines Inc. (NASDAQ:DAL) CEO Ed Bastian has suggested that President-elect Donald Trump's administration could provide a "breath of fresh air" for the airline industry, criticizing what he perceives as government "overreach" during President Joe Biden's era.

What Happened: Speaking ahead of the company's investor day, Bastian signaled potential regulatory changes that could significantly impact the aviation sector, reported the Associated Press on Thursday.

The airline executive's comments reflect a broader sentiment among industry leaders who anticipate a more business-friendly regulatory environment.

Southwest Airlines Co (NYSE:LUV) CEO Robert Jordan similarly expressed hope for a Department of Transportation that might be "less aggressive" in rule-making, highlighting growing frustration with current consumer protection regulations.

Delta's financial performance provides context for these expectations. The airline reported a robust $2.6 billion profit in the first nine months of 2024, with projected fourth-quarter adjusted profit between $1.60 and $1.85 per share. The company expects 2025 revenue growth in mid-single digits, positioning itself strongly amid potential regulatory shifts.

Why It Matters: Wall Street appears cautiously optimistic about the airline sector's future. Goldman Sachs has resumed coverage of major airlines, providing Delta with a "Buy" rating and an $83 price target. Analysts expect continued supply constraints through 2025, with a focus on airlines' ability to adapt to changing market conditions.

The potential appointment of Sean Duffy as Transportation Secretary could herald broader changes across the transportation sector. Industry observers speculate about the potential streamlining of regulations, enhanced infrastructure focus, and possible modifications to electric vehicle and autonomous driving policies.

Price Action: Delta Air Lines closed at $63.64 on Wednesday, down 1.71% for the day. In pre-market trading, the stock was down 0.5% at the time of writing. Year to date, the stock has surged by 57.33%, according to data from Benzinga Pro.

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